Understanding Costs of Quality

Abstract

In this paper. the authors have carried out an extensive study to review the literatures documented so far by numerous researchers in the area of quality cost. The various approaches used to categorize the quality cost and some of the models of quality costs are discussed. The total quality cost as a percentage of some bases. directly sensitive to fluctuations in business. will give more exact picture of the situation. Various bases used by different authors in priority are found out. The paper aims at spreading the simple message that we need to think about investing in quality in terms oj costs (societal resources) to enhance incomes. If any enterprise has a poor quality level. an initial investment in quality will surely lower the operational cost in the long run and will transform the poor quality producer into a high quality provider eventually building the image and multiplying revenue generation.